Here's What to Know Ahead of Great Lakes Dredge & Dock's Q3 Earnings

Core Insights - Great Lakes Dredge & Dock Corporation (GLDD) is expected to report its third-quarter 2025 financial results on November 4, prior to market opening [1] - In the previous quarter, GLDD's adjusted earnings per share (EPS) and revenues exceeded the Zacks Consensus Estimate by 58.5% and 12.3%, with year-over-year growth of 61.5% and 20.9% respectively [1] Financial Performance - The Zacks Consensus Estimate for GLDD's third-quarter adjusted EPS remains at 17 cents, reflecting a 30.8% year-over-year increase from 13 cents [3] - The consensus estimate for revenues is $197.6 million, indicating a 3.4% year-over-year increase [3] - GLDD has surpassed the consensus earnings mark in each of the last four quarters [2] Revenue Drivers - Revenue growth is anticipated due to strong infrastructure demand, expansion in the offshore wind sector, and effective project execution [4] - Maintenance dredging, which accounted for 11.8% of total revenues in Q2 2025, is expected to show weaker demand, particularly in Florida, Texas, Puerto Rico, and Mississippi [5] - Coastal protection dredging, making up 33.7% of Q2 2025 revenues, is projected to gain momentum due to increased government initiatives [5] - Capital dredging, which comprised 54.5% of Q2 2025 revenues, is expected to face challenges due to decreased revenues from Virginia projects [5] Segment Performance - The Zacks Consensus Estimate for Dredging Capital revenues is $107.5 million, a slight decline of 1.1% from the previous year [6] - Dredging Maintenance revenues are estimated at $21.2 million, reflecting a significant decrease of 44.1% from $37.9 million a year ago [6] - Dredging Coastal Protection revenues are expected to reach $72.5 million, indicating a year-over-year growth of 65.1% [6] Earnings Outlook - GLDD's bottom line is projected to improve year-over-year due to better utilization, project performance, and a favorable project mix [7] - Q3 revenues are expected to grow 3.4% year-over-year, driven by strong coastal protection activities [8] - Despite higher labor costs, improved project mix and equipment utilization are likely to enhance margins [8] - The focus on higher-margin capital and coastal protection projects is anticipated to support the bottom line, despite increased employee benefit expenses [9] Earnings Prediction Model - The current model does not predict an earnings beat for GLDD, as it has an Earnings ESP of 0.00% and a Zacks Rank of 2 (Buy) [10][11]